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So my wife and I both signed an Exclusive Right to Represent through our broker in Florida. Given this is the first time either of us have been in the market for a home and even worked with a broker - we are both new to this. We put in an offer for a home last month and during the process of signing the required paperwork, the agent had us sign a Exclusive Right to Represent document that name both my wife and I together as "buyer"
Here is our issue... Given that we have agreed to work with our agent (which we do love and trust her judgement) - we are bound to pay them 3% of purchase price if we purchase a home from A. another broker and or B. By Owner.
Here is the issue: We just found "the house" we have been looking for. Problem is the home is for sale by owner and we would want to purchase it without a broker representative. Because the Exclusive Right to Represent document lists my wife and I as the "Buyer" could we get around having to pay the broker their 3% if my wife buys the for sale by owner home with her name only and or her and my mother in-law? Just trying to see how we can get around this agreement because this house is hot and we are ready to move on it ASAP.
Grab hold of your morals and do the right thing. First of all, have you asked the FSBO owner if they will pay your agent the 3%? Many FSBO are willing to work with agents.
Second, if your wife's name is on the contract, then I don't know how you could get around it. I'm not an attorney so I'm sure there could be some shady way of doing it, but really, o you want to be that person?
Also, you admit you are new to real estate. How do you know what you are doing? How do you know if the house you want is priced correctly?
You will probably need to have an attorney look at the contract to tell you if you can get around it with just your wife's name or if you can do something else. You better be sure because otherwise I think your agent can sue you.
The bottom line is that you have to decide what kind of person you want to be.
One more thing...if you have just begun your search or haven't even started and the agent has not spent any time or money on you - you might ask her if you can just be released from the contract. If she has already shown you homes and spent time and energy with you and you still want to dump her to save a few bucks...well...
If one of your names appear on the deed you owe that agent 3%. Have your buyer agent get involved and they can negotiate payment of their fee by the seller directly.
if my wife buys the for sale by owner home with her name only and or her and my mother in-law?
Stupid, stupid, stupid. Do you really want YOUR home owned by your wife and her mother?????? You, as husband, will be signing a quit claim deed - signing away all your rights to that house. Regardless of how wonderful your marriage and your MIL are, look at the divorce rates and that should make you reconsider this idea.
And possibly mortgage fraud, too.
Quote:
Originally Posted by Silverfall
If one of your names appear on the deed you owe that agent 3%. Have your buyer agent get involved and they can negotiate payment of their fee by the seller directly.
Excellent advice, both for your long term sanity, legally, and morally.
And have your agent check on the price of the SOLD comps of this perfect house. How much you wanna bet the FSBO is overpriced based on that information?
The agent does more than find a home so the fact you found a FSBO is sort of immaterial. The agent can still help you through negotiations, inspections, and closing.
The agency does bind you. Have you seen the home yet, and if so why didn't you include your agent initially?
Trolling? Asking a bunch of real estate agents what the best way is to screw a (lovable and trustworthy) agent out of compensation, that was agreed to in writing, seems specifically designed to ruffle some feathers. If you're serious, you need to ask a lawyer.
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